Chilean Cobalt (US-OTC: COBA) announced on Thursday a life-of-mine offtake agreement with a Glencore subsidiary for the cobalt and copper from its La Cobaltera and El Cofre projects in northern Chile. This deal positions the company to meet growing demand amid market uncertainties, particularly due to a cobalt export ban from the Democratic Republic of Congo and its potential impact on supply.
The US Strategic Metals facility in Fredericktown, Missouri, will process the majority of the intermediate products, with an anticipated annual output of 3,000–5,000 tonnes of cobalt. Chilean Cobalt’s stock surged 39% to $0.45 per share following the announcement, raising its market capitalization to approximately $20 million.
With plans for a phased restart of mining operations, Chilean Cobalt aims for a throughput of 10,000 tonnes per day, targeting annual outputs of 3,000–5,000 tonnes of cobalt and 20,000–25,000 tonnes of copper over the next 10 to 15 years. The estimated capital required is between $300 million and $400 million, with an existing letter of interest from the US EXIM Bank covering 80% of initial expenditures.
